By Fineline Cube 
China‑based Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (SHA: 600196, HKG: 2196) released its 2025 first‑half financials on 27 Aug 2025. The company’s total revenue fell 4.63 % YoY to RMB 19.514 bn, while net profit attributable to shareholders (ex‑non‑recurring items) slid 23.39 % YoY to RMB 961 m.
Driver: Volume‑Based Procurement (VBP)
The dip reflects the VBP programme that has tightened pricing across China’s public hospitals. Key segment impacts include:
| Segment | 2025H1 Revenue (RMB bn) | YoY Change | % of Total Revenue |
|---|---|---|---|
| Pharmaceutical | 13.901 | –5.29 % | 71.24 % |
| Medical Device & Diagnostics | 1.955 | –5.51 % | 10.02 % |
| Healthcare Services | 3.592 | –1.83 % | 18.41 % |
Silver Linings: Innovative Drugs
Despite the headwinds, Fosun’s innovative‑drug portfolio grew 14.26 % YoY to RMB 4.3 bn, accounting for 22 % of total sales.
- Five new indications for four in‑house or licensed‑in drugs received market approval during the period.
- The drug‑segment revenue was 71 % of the pharmaceutical sub‑segment and contributed the most to the company’s margin resilience.
Geographic Snapshot
| Region | 2025H1 Revenue (RMB bn) | YoY Change | % of Total Revenue |
|---|---|---|---|
| Mainland China | 14.036 | –6.13 % | 71.93 % |
| Outside China & Other | 5.478 | –0.58 % | 28.07 % |
The modest decline outside China reflects a broader slowdown in international demand for Fosun’s diagnostic and device lines, though the company remains focused on expanding its presence in Southeast Asia and the United States.
Market Outlook
Analysts note that the VBP policy will continue to compress margins for the next 12‑18 months. However, Fosun’s innovative‑drug pipeline and its strategic licensing deals are expected to offset pricing pressures, positioning the company for a rebound in 2026.-Fineline Info & Tech